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Types of inventory adjustments

If you don’t have a proper system in place to iraq telegram data account for returns, then you’re likely to face discrepancies in your physical stock levels. You may end up having more physical stock than what’s record in your system.

Counting errors
Human errors in the physical inventory counting process can also lead to inaccuracies. This can either decrease or increase your inventory quantity in your records or in actuality.

Clerical errors
There can also be clerical errors resulting in discrepancies in your inventory value. For example, some items may be accidentally recorded with a higher cost of goods sold (COGS), leading to an overestimation of your inventory value.

There are three kinds of inventory adjustments brands can make: decreasing inventory quantity recorded, increasing inventory quantity recorded, and inventory revaluation.

Decreasing quantity
This is a type of quantity adjustment that helps you account for inventory shrinkage and loss as well as waste, damage, and internal use. It involves how to maximize sem roi with conversion optimization [the business case] reducing the on-hand quantity of inventory you state in your records.

Increasing quantity
On the other hand, you could have more agb directory inventory units on hand than you had recorded because of counting errors and returns. In this case, you’ll need to adjust recorded inventory to increase your inventory counts.

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